SMARTSolutions for Supply Chain Management

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| SA FE T Y SU PPL I E S & EQ U I PM EN T | PUM P S & PUM P PAR T S | I N D US T R IA L & H Y D R AU L I C H OSE | I N D US T R IA L
SU PPL I E S | SE A L S & SE A L I N G CO M P O N EN T S | EL EC T R I C AL EQ U I PM EN T & SU PPL I E S | W EL D I N G SU PPL I E S &
EQ U I PM EN T | B E A R I N G S & P OW ER T R A N SM I SSI O N EQ U I PM EN T | SA FE T Y SU PPL I E S & EQ U I PM EN T | PU M P S &
PU M P PA R T S | I N D US T R IAL & H Y D R AU L I C H OSE | I N D US T R IAL SU PPL I E S | SE A L S & SE A L I N G CO M P O N EN T S
EL EC T R I C A L EQ U I PM EN T & SU PPL I E S | W EL D I N G SU PPL I E S & EQ U I PM EN T | B E A R I N G S & P OW ER T R A N SM ISSI O N
EQ U I PM EN T | SAFE T Y SU PPL I E S & EQ U I PM EN T | PUM P S & PUM P PA R T S | I N D US T R IA L & H Y D R AU L I C H OSE |
I N D US T R IA L SU PPL I E S | SE AL S & SE AL I N G CO M P O N EN T S | EL EC T R I C A L EQ U I PM EN T & SU PPL I E S | W EL D I N G
SU PPL I E S & EQ U I PM EN T | B E AR I N GS & P OW ER T R AN SM ISSI O N EQ U I PM EN T | SA FE T Y SU PPL I E S & EQ U I PM EN T
| PU M P S & PUM P PA R T S | I N D US T R IA L & H Y D R AU L I C H OSE | I N D US T R IAL SU PPL I E S | SE AL S & SE A L I N G
CO M P O N EN T S | EL EC T R I C AL EQ U I PM EN T & SU PPL I E S | W EL D I N G SU PPL I E S & EQ U I PM EN T |
SMARTSolutions for Supply Chain Management
Founded in
1908
Customer Driven
Experts in MROP
Solutions
DXP Enterprises, Inc.
The Industrial Distribution Experts
Corporate Headquarters
7272 Pinemont
Houston, TX 77040
713-996-4700
DXP is a publicly traded professional distribution management company that provides MRO
products and services to a variety of industries
through its Innovative Pumping Solutions®
(IPS) Supply Chain Services and Service Centers.
DXP continues to stay on the leading edge of
technology, training and products while attract-
ing and retaining the best employees and part-
nering with the most reputable, reliable and well
known manufacturers. Our corporate strategy is
simply to be the best solution for the industrial
customer.
We speak your language...
Increased Productivity
Documented Cost Reductions
Efficient Supply Chain
Optimal Control
Streamlined Operations
Smart, Informed Solutions
Measurable Bottom Line Results
DXP will help you transform what is no longer manageable, readable or
too time consuming in your supply chain and present you with SMART,
informed solutions to help increase your bottom line.
With over 100 years in the industry and more than 60 years experience
in assisting customers in the achievement of their supply chain goals,
we continue to redefine the language and solutions that our competitors
will someday be using...
Cost reduction. Efficiency.
Increased Production
Engineering Specification
9%
Inventory Carrying Cost
5%
acquisition &
ownership
cost
Errors 4%
Product 45%
Receiving &
Expediting 10%
Administration 12%
Quotations &
Purchasing 15 %
80
70
60
50
40
30
20
10
0
Dollars Spent
Production Cost
Vendor
Consolidation
Administrative Cost
DXP Enterprises, Inc. ©2011
Direct Labor Cost
Inventory Cost
Freight Cost
Shrinkage/obsolete
PROCUREMENT COST
continuum
of savings
Receiving Cost
EDI
Remote
Order Entry
Accounting Cost
Purchasing Cost
Technology
Solutions
Bar Coding
80
70
60
50
40
30
20
10
0
Transactions
Replenishment
Services
Receiving
Bin & Shelf
Stocking
Industrial
Dispensing
Inventory
Management &
Procurement
Services
SAVINGS
dollars spent
vs.
transactions
OEMMROP
Procurement
Inventory
Management
Bin & Shelf
Replenishment
On-Site Store
Services
Procurement
Inventory
Management
Replenishment
Store Issuing
Store Area
Management
Consigned
Inventory
Lowest Cost. Best Service.
DXP’s single mission is to help our customers become more competitive. This is achieved by reducing indirect
material cost, order cycle time, increasing productivity, creating enterprise-wide inventory, procurement visibility,
and control. DXP has developed assessment tools and master plan templates that streamline operations, boost
productivity, and remove excess cost from supply chain processes. Examples of the application of this proven
process include:
• Reducing pure costs of indirect materials
• Creating enterprise-wide inventory and procurement
• Data mining to assist purchasing decisions
• Trend identification and troubleshooting for plant operations
DXP Supply Chain Services owns a solid foundation in distribution and fulfillment systems, procurement
outsourcing, and the technology required to integrate both seamlessly. Our multi-faceted approach allows us
to use maximum efficiency and optimal control to manage the entire supply channel. DXP is the only company
in the industry with the proven ability to translate these core competencies into the lowest-cost, best-service
solution for our customer.
How we do
what we do.
DXP’s Supply Chain Services customers share many
of the same objectives: guaranteed hard-dollar cost
savings achieved through improved processes and
systems, reduced inventory, lower unit price and
increased control.
supply
chain
model
comparison
FIRST TIER
PRODUCTS
PROVIDER
DISTRIBUTION
TECHNOLOGY
OWNED
TOTAL INDIRECT
SPEND
MANAGEMENT
PRODUCT
EXPERTISE
DXP
DISTRIBUTORS
PURE INTEGRATORS
HYBRID
LEGEND
CONSULTANTS
EXCELLENT
AVERAGE
SOFTWARE COMPANIES
FAIR
POOR
3PL
first tier
product
provider
MANUFACTURING
DISTRIBUTOR
LIMITED COMMODITY
OFFERING FIRST TIER %
NON-CORE
INTEGRATED
SUPPLY
PROVIDER
CUSTOMERS
LIMITED COMMODITY
ADDING 2ND TIER %
MANUFACTURING
DXP
CUSTOMERS
BROAD COMMODITY
OFFERING FIRST TIER %
“Working collaboratively with DXP we have improved our parts
supply chain so significantly that our customer expectations have
dramatically increased and now we are focusing on developing a
vision of and executing supply chain perfection”.
DXP Enterprises, Inc. ©2011
Executive Manager,
Fortune 100 Company
First Tier Options. SmartSolutions.
DXP directly represents up to 90% of all the MROP products you use. Unlike
many other distributors who buy products from second-tier sources, DXP
takes you to the source for the products you need, so you can get them more
efficiently. In fact, we are the source. We own the supply chain that directly
represents more than 2 million SKUs from 11,000 manufacturers. This MRO
offering is unmatched in the industrial distribution marketplace.
DXP’s SmartSolutions will help you cut product costs, improve supply chain
efficiencies and know where to turn for technical support.
DXP provides you with the convenience of dealing with a single, technically
capable partner. Only DXP serves you with such powerful resources.
Our main objective is to improve our customers’ competitive standing in the
marketplace; therefore, our customers can expect guaranteed savings of
up to 25%.
The message is clear – DXP has demonstrated abilities to drive savings and
supply chain improvement across all industries.
®
BEARINGS & POWER
TRANSMISSION
INDUSTRIAL
SUPPLIES
PUMPS & PUMP
ACCESSORIES
SAFETY SUPPLIES &
EQUIPMENT
Optimal Control.
Smart, Informed Choices.
Comprehensive Assessment
The development of your customized solution begins with a Supply Chain
Assessment that documents existing indirect material processes, technology,
and cost structure. We analyze your current and past purchasing, inventory, and
storeroom metrics, to not only identify supply chain opportunities, but to also
validate perceptions.
DXP takes a consultative approach to determine both the strengths, and
opportunities for improvement, that exist within the customer’s current indirect supply chain. The
assessment determines how we can best streamline operations, drive value during procurement, and
increase control of the storeroom.
As a result of the site assessment, we develop a general “Business Case” that compares the customer’s current
supply chain costs with the costs and value that will be realized under a DXP Smart Supply Chain Services
program.
Master Plan Development
The assessment provides all needed information to develop a comprehensive indirect materials management
Master Plan. This plan proposes customized solutions with contractually guaranteed, measurable results that
include:
• Material cost reductions
• Labor cost reductions
• Supplier base reductions
• Lower freight costs
• Reduced cycle time
• Inventory controls
• Improved technology utilization
DXP Enterprises, Inc. ©2011
Program Verification (Implementation - Phase 1)
If the potential customer agrees with both the findings outlined in the initial Business Case and the Master Plan,
that indicates a program can drive substantial value; DXP would perform a second deeper supply chain analysis.
The second analysis would verify the predictions outlined in the Business Case and would create a specific
sourcing strategy and detailed plan prior to the start of implementation.
Best-in-Class Implementation Strategy
Successful operations are contingent on a successful implementation. The DXP Supply Chain Services
Implementation group has implemented numerous supply chain services locations throughout North America.
We have and will continue to develop, based on our commitment to continuous improvement, a “Best in Class”
methodology that allows us to implement with minimal disruption to our customer’s business. The DXP
Supply Chain Services Group is committed to its “Customer First” mentality and is organized around each of its
customers. A hierarchy of operational oversight is applied to each engagement to include a VP of Operations,
General Manager and a Program Manager with unique responsibility for a single customer. Our structure
allows for intense customer focus and attention. According to our diverse customer base, this structure has
served them better than any previous geographically based management structure.
DXP’s Proprietary Software Customized for Your Needs
DXP owns and operates its own software companies, which provides for maximum customization, flexibility
and cost containment. We develop and implement software that produces results for our customers. DXP
systems are web enabled and have the ability to accept orders through our multiple systems:
• Customer e-procurement systems
• DXP’s proprietary e-procurement system.
• Direct data transfer
DXP has been building electronic content for over 15 years. At present, we have over 4 million SKUs in our
e-catalog. Additionally, DXP utilizes progressive data enhancement tools and methods to transform low-quality
data into usable and robust information. The unique combination of products, processes, and system expertise
allows us to implement and manage programs and software focused on the indirect supply chain.
Most importantly, DXP gives its customers the commitment of its stake
holders who are on the front line everyday to ensure the success of every
engagement.
Measurable
Bottom Line Results.
DXP Enterprises, Inc. ©2011
For an analysis of how much money DXP
could save your company, contact a DXP
Supply Chain Services professional today.
7272 Pinemont
Houston, TX 77040
1-800-830-3973
[email protected]
DXP Enterprises, Inc. © 2011
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